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Bo is hopeless

Started by hawgon, November 16, 2017, 03:43:26 pm

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DoubleReedHawgCaller

Bob ain't getting no poonanny....
A couple female midgets, a few bottles of Wild Irish Rose, and a room at the Trout Inn...... who knows what may happen.....

BroyledNutts

Quote from: factchecker on November 16, 2017, 03:45:57 pm
Suites are sold out.

Not sure about loge boxes but I heard it was close.

The area that will be a tough sell will be the NOC club seats.  It's a pretty big price jump from the SOC or the EOC.

Some NOC will be filled by EOC holders who are being moved so the EOC can be remodeled into more loge type seating ...

*EDIT* .... Or, at least that was the plan before Wednesday happened.

 

AflacHawg

Quote from: GuvHog on November 16, 2017, 04:03:25 pm
That is correct. They haven't sold them yet but people have committed to buying them.

Have to wonder if those commitments came with stipulations?

Bubba's Bruisers

Quote from: Hogwild on November 16, 2017, 03:54:40 pm
That makes the most sense.  If we don't hit a certain benchmark in sales, they won't issue the bonds and contractor would want payment on completion.


The big question is how many of the boxes and suites are unsold. Posters have stated that the suites are all sold, and the boxes are close, if that is true why is the BOT so concerned?

Why wouldn't the contractor want to be paid upon completion?  Is his contract contingent upon the issuance of bonds?  Is he an investor in the project?
I will put enmity between you and the woman, and between your offspring and her offspring; he shall bruise your head, and you shall bruise his heal.

Genesis 3:15

hawgon

Quote from: Grizzlyfan on November 16, 2017, 04:07:26 pm
thanks.  I thought that was the answer.  So as to Mike Irwin's first statement that the contractor can't be paid if 80% of the boxes aren't sold.  that's just not correct. 

As to Mike Irwin's other statement on Bo's show.  If 80% of the boxes aren't sold the bondholders can call the bonds?  I haven't heard of this?  What would their plan be? to foreclose on the stadium?

Well, they basically have a mortgage on the entirety of the athletic department's revenues.

Grizzlyfan

Quote from: MartinGit on November 16, 2017, 04:06:28 pm
Look at the bond document referenced above - the bonds have already been issued by the entities on the bond document, led by Stephens.  They've been sold to investors.  The money from the sale of the bonds has been and is being advanced by the bond issuers on some sort of periodic basis (probably monthly) to pay the contractor and subcontractors.  It may be that when it comes to the final advance there is some requirement that 80% of the suites/seats be sold but I'm not going to read through the entire thing to find that out.

The bonds only make up $120M of the projected $160M cost.  That's about 80% and Irwin may be confused about the 80% deal.  Most lenders will only lend 80% of the purchase price/cost - you can see that the university is responsible for coming up with the other $40M from other revenue sources - it's in the bond itself.
I can't get the document to open.  But anyway, what concerns me is Irwin's statement that the contractor won't be paid.  That's just nonsense.  The bonds have been issued and the work is being paid for every day, or week, or month or some such payment structure.

hawgon

Another question is how much the NEZ project is cannabalizing demand for suites and club seating in the rest of the stadium?

Grizzlyfan

I would still like to see this 80% thing in the bond document.  I have my doubts that it's in there.

Grizzlyfan

I am stunned that Mike Irwin would make such inflammatory statements and be so obviously wrong.

ricepig

Quote from: Grizzlyfan on November 16, 2017, 04:07:26 pm
thanks.  I thought that was the answer.  So as to Mike Irwin's first statement that the contractor can't be paid if 80% of the boxes aren't sold.  that's just not correct. 

As to Mike Irwin's other statement on Bo's show.  If 80% of the boxes aren't sold the bondholders can call the bonds?  I haven't heard of this?  What would their plan be? to foreclose on the stadium? 

I linked the whole bond issue, there isn't anything in there about that, ridiculous. As to suites and boxes, well, last game I was invited to a meeting on Loge boxes and club seating, I got invited to another meeting and it only mentioned club seating, no boxes.

The Hawg Marshal

Quote from: BR on November 16, 2017, 04:05:57 pm
  Not much of a football fan huh...    Booger McFarland former LSU All-American, Tampa Bay Buc's-Indy Colt's, 2 Super Bowl Rings, ESPN/SEC Network Analyst 
Well aware who Booger is. My point is , why would you ask him if Arkansas made a mistake firing Long? Does he have some intimate understanding of the workings of  Razorback athletics?

jst01

Quote from: Grizzlyfan on November 16, 2017, 04:09:38 pm
I can't get the document to open.  But anyway, what concerns me is Irwin's statement that the contractor won't be paid.  That's just nonsense.  The bonds have been issued and the work is being paid for every day, or week, or month or some such payment structure.

maybe some kind of short-term bridge loan to fund the construction, secured by the bonds themselves. Who knows..

31to6

Quote from: Ironhawg on November 16, 2017, 03:45:09 pm
I was listening and wish I had made notes.  Somehow if the UA doesn't sell 80% of the boxes before the construction is finished, the issuer of the bonds can call the full debt due immediately.  The BoT felt like the way the deal was financed was reckless.  But didn't they have to approve the deal?  Does that sound right?
I am really tired of Bo's attitude.  He is really angry today.  I know, I know.  I don't have to listen if I don't like it.  When Irwin goes off, my radio is off.
BoT: "So, we have to sell 80%?"
Long: "Don't worry, we can do it."
BoT: "Seems risky, but it is your show."
<fast forward>
BoT: "So, where are we on that 80% commit?"
Long: "Um, you see, the wins and, um, economy, and injured players, and unreasonable fans and um, LOOK UFOs!"
BoT: "Thank you, that will be all. You may wait outside."

 

ricepig

Quote from: BroyledNutts on November 16, 2017, 04:07:46 pm
Some NOC will be filled by EOC holders who are being moved so the EOC can be remodeled into more loge type seating ...

*EDIT* .... Or, at least that was the plan before Wednesday happened.

Wrong, that's where the Founder's Suites are going.

Bubba's Bruisers

Quote from: Grizzlyfan on November 16, 2017, 04:09:38 pm
I can't get the document to open.  But anyway, what concerns me is Irwin's statement that the contractor won't be paid.  That's just nonsense.  The bonds have been issued and the work is being paid for every day, or week, or month or some such payment structure.

Yes, the introduction of the contractor in this discussion is odd unless he means that the UA wouldn't have the funds to pay the contractor's remaining work if the bonds are called in. 
I will put enmity between you and the woman, and between your offspring and her offspring; he shall bruise your head, and you shall bruise his heal.

Genesis 3:15

factchecker

Quote from: hawgon on November 16, 2017, 04:10:36 pm
Another question is how much the NEZ project is cannabalizing demand for suites and club seating in the rest of the stadium?

Not much.

The price increase is pretty substantial.

I talked to my ticket rep and he said quite a few of the suites and loge box commitments were from people on waiting lists (for suites) or new donors.

The clubs and suites sell while the corners in the 500s remain empty.  Supply and demand.

ADD: Plus a good portion of the EOC is being relocated due to the new suites.
WORK FOR IT
PLAN ON IT
EARN IT
OMAHOGS

BroyledNutts

Quote from: ricepig on November 16, 2017, 04:12:36 pm
Wrong, that's where the Founder's Suites are going.

OK, Founder's suites then ... the letter said "suites" ... maybe you should send a clarification to those who are being forcibly moved. They'll feel better its "Founder's Suites" they're being uprooted for.

ricepig

Quote from: hawgon on November 16, 2017, 04:09:14 pm
Well, they basically have a mortgage on the entirety of the athletic department's revenues.

Sure, and if you had any idea on how to read a bond document you would know that they rolled the NEZ bonds into a general bond document that already covered the other $56m in bonds owed across campus. They already had a mortgage on all athletic revenues.

ricepig

Quote from: BroyledNutts on November 16, 2017, 04:13:55 pm
OK, Founder's suites then ... the letter said "suites" ... maybe you should send a clarification to those who are being forcibly moved. They'll feel better its "Founder's Suites" they're being uprooted for.
They know, or everyone that has talked with me on here, has known.

Martygit

Here are the events of default in the bond - nowhere is it an event of default to fail to sell 80% of the suites, etc:

The Indenture defines "Events of Default" as:
(a) Payment of the principal and premium, if any, on any of the Bonds shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or
10
(b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due and payable; or
(c) The Board shall for any reason be rendered incapable of fulfilling its obligations under the Indenture; or
(d) Any proceeding shall be instituted, with the consent or acquiescence of the Board, for the purpose of adjusting the claims of creditors pursuant to any federal or State statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of Pledged Revenues; or
(e) The Board shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or the Indenture, and such default shall continue for thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the Board by the Trustee, which may give such notice in its discretion and shall give such notice upon the written request of the registered owners of not less than twenty percent (20%) in principal amount of the Bonds then outstanding; provided, however, that if the default is such that it cannot be corrected within the applicable period, it shall not constitute an Event of Default if corrective action is instituted by or on behalf of the Board within the applicable period and diligently pursued until the default is corrected; or
(f) An event of default shall occur under the 2010 Indenture, the 2013 Indenture, the 2015 Indenture or any subsequent Indenture securing any Additional Parity Bonds.
RIP OTR, REV

factchecker

Quote from: ricepig on November 16, 2017, 04:16:26 pm
Sure, and if you had any idea on how to read a bond document you would know that they rolled the NEZ bonds into a general bond document that already covered the other $56m in bonds owed across campus. They already had a mortgage on all athletic revenues.

People need to understand that EVERY athletic department has a "mortgage".

We had one of the lowest debt totals in the SEC prior to the NEZ expansion.
WORK FOR IT
PLAN ON IT
EARN IT
OMAHOGS

Martygit

...and - the bonds have already been issued and sold - the money from that sale is being used to pay for the construction!!!
RIP OTR, REV

ricepig

Quote from: MartinGit on November 16, 2017, 04:18:48 pm
Here are the events of default in the bond - nowhere is it an event of default to fail to sell 80% of the suites, etc:

The Indenture defines "Events of Default" as:
(a) Payment of the principal and premium, if any, on any of the Bonds shall not be made when the same shall become due and payable, either at maturity or by proceedings for redemption or otherwise; or
10
(b) Payment of any installment of interest on any of the Bonds shall not be made when the same shall become due and payable; or
(c) The Board shall for any reason be rendered incapable of fulfilling its obligations under the Indenture; or
(d) Any proceeding shall be instituted, with the consent or acquiescence of the Board, for the purpose of adjusting the claims of creditors pursuant to any federal or State statute now or hereafter enacted, if the claims of such creditors are under any circumstances payable out of Pledged Revenues; or
(e) The Board shall default in the due and punctual performance of any other of the covenants, conditions, agreements and provisions contained in the Bonds or the Indenture, and such default shall continue for thirty (30) days after written notice specifying such default and requiring the same to be remedied shall have been given to the Board by the Trustee, which may give such notice in its discretion and shall give such notice upon the written request of the registered owners of not less than twenty percent (20%) in principal amount of the Bonds then outstanding; provided, however, that if the default is such that it cannot be corrected within the applicable period, it shall not constitute an Event of Default if corrective action is instituted by or on behalf of the Board within the applicable period and diligently pursued until the default is corrected; or
(f) An event of default shall occur under the 2010 Indenture, the 2013 Indenture, the 2015 Indenture or any subsequent Indenture securing any Additional Parity Bonds.


Wasted copying and pasting, lol. They won't read it, Mike Irwin said so!

Bubba's Bruisers

Quote from: MartinGit on November 16, 2017, 04:19:48 pm
...and - the bonds have already been issued and sold - the money from that sale is being used to pay for the construction!!!

Which is why I couldn't understand this statement...

Quote from: Hogwild on November 16, 2017, 03:54:40 pm
That makes the most sense.  If we don't hit a certain benchmark in sales, they won't issue the bonds and contractor would want payment on completion.

I will put enmity between you and the woman, and between your offspring and her offspring; he shall bruise your head, and you shall bruise his heal.

Genesis 3:15

 

factchecker

Quote from: ricepig on November 16, 2017, 04:20:36 pm
They won't read it, Mike Irwin said so!

It has nothing to do with Mike Irwin but rather that somebody (doesn't really matter who) said that the NEZ might be a failure...... hell, they love that someone hinted to anything negative to the stadium on campus.  It's just the way it is.
WORK FOR IT
PLAN ON IT
EARN IT
OMAHOGS

Martygit

Quote from: ricepig on November 16, 2017, 04:20:36 pm
Wasted copying and pasting, lol. They won't read it, Mike Irwin said so!

Probably true - just like they don't understand that the bonds have already been issued and sold - oh well, it's a good thing for lawyers that there are a bunch of really stupid people in this world
RIP OTR, REV

hawgon

Quote from: ricepig on November 16, 2017, 04:16:26 pm
Sure, and if you had any idea on how to read a bond document you would know that they rolled the NEZ bonds into a general bond document that already covered the other $56m in bonds owed across campus. They already had a mortgage on all athletic revenues.

I know enough to read that $130 million is a lot more than $56 million.  What you've said is a stupid as saying, "You might as well buy that new Escalade, you've already got a car payment with that Sonata."

jgphillips3

If they weren't sold before, once we dump Bielema in 8 days, I have a feeling sales will perk back up anyway.  The only thing that was really hurting sales was the turd of a product being put on the field.  Any new coach that isn't some ridiculous retread will reinvigorate the market.

Martygit

Quote from: Bubba's Bruisers on November 16, 2017, 04:22:38 pm
Which is why I couldn't understand this statement...

That statement is just wrong - but it's what Mike Irwin said so they're taking it as gospel
RIP OTR, REV

Bubba's Bruisers

Quote from: MartinGit on November 16, 2017, 04:25:12 pm
That statement is just wrong - but it's what Mike Irwin said so they're taking it as gospel

I know it's wrong, and if it's actually what Mike said, then geez...
I will put enmity between you and the woman, and between your offspring and her offspring; he shall bruise your head, and you shall bruise his heal.

Genesis 3:15

CiriusPorker

Interesting.  I see Bo as a voice of rational thought in a conversation that's so dominated by how many checks are in the win column.  Sure, Long was fired.  Perhaps it was better for the university.  But at least Bo is presenting some central views that maybe he did something good.  Just offering a counter point doesn't mean he's losing his mind over it.

Martygit

Quote from: Bubba's Bruisers on November 16, 2017, 04:26:59 pm
I know it's wrong, and if it's actually what Mike said, then geez...

I actually heard Mike say it on Bo's show while on the way home - at first I thought that maybe the University got construction financing through banks and that the bond issue was to pay off the construction loan and that if 80% of the improvements weren't sold, the bonds wouldn't be issued and the banks would call the loan -

But after reading the bond document that's not the way it is at all - the bonds have been issued, sold and interest on the bonds are being paid currently by the university - and Irwin has no idea what he's talking about
RIP OTR, REV

ricepig

Quote from: hawgon on November 16, 2017, 04:24:12 pm
I know enough to read that $130 million is a lot more than $56 million.  What you've said is a stupid as saying, "You might as well buy that new Escalade, you've already got a car payment with that Sonata."


I guess no one is going to pay to sit in those new seats, so no new income will be coming in.........

Grizzlyfan

Plus he was talking about guys working nights and weekends and how the project might end up costing over $200 million.  I would almost guarantee that the contract for the expansion is a fixed price contract and the contractor has them working nights and weekends to stay on schedule so they don't have liquidated damages. 

The $200 million number is the cost of construction plus interest.

Everything Irwin said on that show was wrong and irresponsible.

scaldedhog

Quote from: Tony Perkis on November 16, 2017, 03:53:42 pm
Bo is an angry angry man about this situation and it's painfully obvious.

Edit: insert Low T center joke.
[/quote
Rephrase your honor.  BO is a angry LITTLE BITTY man.
Make Arkansas Football great again

AflacHawg

Quote from: jgphillips3 on November 16, 2017, 04:24:15 pm
If they weren't sold before, once we dump Bielema in 8 days, I have a feeling sales will perk back up anyway.  The only thing that was really hurting sales was the turd of a product being put on the field.  Any new coach that isn't some ridiculous retread will reinvigorate the market.

It really is just that simple!! Start winning and watch those pocket books open up.

NoogaHog

Quote from: jgphillips3 on November 16, 2017, 04:24:15 pm
If they weren't sold before, once we dump Bielema in 8 days, I have a feeling sales will perk back up anyway.  The only thing that was really hurting sales was the turd of a product being put on the field. Any new coach that isn't some ridiculous retread will reinvigorate the market.

Wooo Pig Mike Riley!
Слава Богу - Slava Bogu - "Glory to God"

Donny2665

My understanding is, the main suites have been accounted for but they have outdoor club seats available.
This life's hard, but it's harder if you're stupid.~George V.Higgins

Ignorance is a voluntary misfortune!~Nicolas Ling

Never argue with stupid people, they will drag you down to their level and then beat you with experience.~Mark Twain

ricepig

Quote from: Grizzlyfan on November 16, 2017, 04:31:15 pm
Plus he was talking about guys working nights and weekends and how the project might end up costing over $200 million.  I would almost guarantee that the contract for the expansion is a fixed price contract and the contractor has them working nights and weekends to stay on schedule so they don't have liquidated damages. 

The $200 million number is the cost of construction plus interest.

Everything Irwin said on that show was irresponsible.

Correct, the was a FOIA on Steinmetz and a trustee and the email stated that everything was on schedule and within the GMP of $132m. I guess Steinmetz is lying too, Varady's lying, the bond document is lying........

Donny2665

Quote from: Grizzlyfan on November 16, 2017, 04:31:15 pm
Plus he was talking about guys working nights and weekends and how the project might end up costing over $200 million.  I would almost guarantee that the contract for the expansion is a fixed price contract and the contractor has them working nights and weekends to stay on schedule so they don't have liquidated damages. 

The $200 million number is the cost of construction plus interest.

Everything Irwin said on that show was wrong and irresponsible.
We have crews working on the expansion. We aren't working days and nights. We are working 6 days a week.
This life's hard, but it's harder if you're stupid.~George V.Higgins

Ignorance is a voluntary misfortune!~Nicolas Ling

Never argue with stupid people, they will drag you down to their level and then beat you with experience.~Mark Twain

buldozer

Quote from: Tweeter on November 16, 2017, 03:52:58 pm
Bo is not from Arkansas and he now realizes that the GOBN is back and he now is an outsider!
^^^This^^^ If I recall correctly, Bo is from FL

Martygit

Quote from: Grizzlyfan on November 16, 2017, 04:31:15 pm
Plus he was talking about guys working nights and weekends and how the project might end up costing over $200 million.  I would almost guarantee that the contract for the expansion is a fixed price contract and the contractor has them working nights and weekends to stay on schedule so they don't have liquidated damages

The $200 million number is the cost of construction plus interest.

Everything Irwin said on that show was wrong and irresponsible.


That makes more sense - I'm not sure about the $200M figure though - I know it's been thrown about but the bond talks about how the $120M bond issue covers the cost of the bonds in addition to the improvements - not sure if that cost includes anticipated interest for the two years of construction or not.
RIP OTR, REV

Grizzlyfan

Quote from: Donny2665 on November 16, 2017, 04:36:32 pm
We have crews working on the expansion. We aren't working days and nights. We are working 6 days a week.
Thanks.  I should have saide IF they are working nights and weekends.  I have no idea if they are or not. 

ricepig

Quote from: MartinGit on November 16, 2017, 04:41:45 pm

That makes more sense - I'm not sure about the $200M figure though - I know it's been thrown about but the bond talks about how the $120M bond issue covers the cost of the bonds in addition to the improvements - not sure if that cost includes anticipated interest for the two years of construction or not.

The $200m number comes from the $166m of so to pay off the bonds + the $40m in donations for suite and loge seating.

Martygit

I can't wait to see if Irwin will get on here and try to explain what he said  ;D
RIP OTR, REV

Dropkick

Quote from: ricepig on November 16, 2017, 04:34:26 pm
Correct, the was a FOIA on Steinmetz and a trustee and the email stated that everything was on schedule and within the GMP of $132m. I guess Steinmetz is lying too, Varady's lying, the bond document is lying........
Haha, you are wasting keystrokes on some of these self acclaimed financial geniuses.

ricepig

Quote from: Grizzlyfan on November 16, 2017, 04:43:29 pm
Thanks.  I should have saide IF they are working nights and weekends.  I have no idea if they are or not. 

It's my understanding that the only overtime was for the construction of the two big screens getting them ready for the first game.

Martygit

Quote from: ricepig on November 16, 2017, 04:44:19 pm
The $200m number comes from the $166m of so to pay off the bonds + the $40m in donations for suite and loge seating.

I'd have to go back and look and I may have the exact numbers wrong but the bond issue is only for $120M+ with the balance of the $160M projected cost to be come up with by the university.  I can't imagine that there would be $40M in interest on the $120M over a two year period - the rate would be too high (basically 15%/year or so)
RIP OTR, REV

ricepig

Quote from: MartinGit on November 16, 2017, 04:44:32 pm
I can't wait to see if Irwin will get on here and try to explain what he said  ;D

Now, a bigger concern that will effect every school, the House tax bill has in it a provision to do away with the charitable deduction part of a ticket, big problem for every school.
http://collegefootballtalk.nbcsports.com/2017/11/16/new-house-tax-bill-will-pull-apart-our-system-says-one-athletic-director/amp/

John Snow

I guess Mike Irwin is now Gordon Gecko from the movie Wall Street and has insider knowledge with Stephens inc who helped write the bond ??